Soft Drinks in Cameroon
Euromonitor International's Soft Drinks in Cameroon market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 24 | Publication date: Jun 2006
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Executive summary
A good performance across the board
Soft drinks enjoyed strong demand over the review period, although this dwindled in 2005. Prices of soft drinks in Cameroon were significantly raised by half a percentage point increase in VAT and an increase in excise duties under new finance law in January 2005. High transaction costs also underpinned the significant price rises.
Furthermore, a wave of inflation following the increase in VAT and international oil price hikes, unaccompanied by salary adjustment measures, forced consumer purchasing power to plummet by nearly 30% in 2005. Worse still, the poor state of Cameroon's transport infrastructure, coupled with unreliable electricity power and water supply and a generally high transaction cost environment, added over 15% to breweries' production costs. Against the backdrop of increasing average production costs and declining consumer purchasing power, demand for soft drinks in Cameroon declined by 8% in retail volume terms in 2005.
Harsh weather favours strong growth for much of the review period
Since 2003, Cameroon has experienced unprecedented long and particularly severe dry seasons characterised by very high temperatures and falling water levels. 30% of Cameroon's population live in the 'semi-desert' northern part of the country and are mostly Muslims. This suggests that alcohol consumption in this region is highly insignificant. The combined influences of religion and increasingly high temperatures throughout the country have favoured the consumption of soft drinks, particularly bottled water.
Bottled water is most dynamic sector
During the review period, bottled water emerged as the most dynamic sector in both volume and value terms. As in most developing countries, Cameroon suffers from inadequate provision of public goods, notably potable water and electricity.
Since 2000, when it was earmarked for privatisation, SNEC, the country's monopoly water corporation, has consistently failed to regularly deliver drinking water to Cameroonian homes, leaving wealthier families with little choice other than buying bottled water for household consumption. Less fortunate households resorted to digging wells for water but with the rising surge of water-related epidemics, particularly cholera and diarrhoea, there was a deliberate attempt by most segments of the Cameroonian population to consume much safer bottled water.
Unit prices continue to increase while per capita consumption declines in 2005
With the exception of 2005, in terms of sales of soft drinks, value growth was much more dynamic than volume growth demonstrating that both unit prices and per capita consumption increased during the review period. As is to be expected in cases of declining consumer purchasing power, volume decline was faster in foodservice than in retail terms in 2005, whilst the opposite was true for value sales, and foodservice value sales were at a faster increase than in retail.
However, in Cameroon in 2005, with rising average production costs against a backdrop of declining consumer purchasing power, unit prices remained on the increase whereas per capita consumption declined significantly.
Health awareness boosts sales of soft drinks
With the increasing threat of the HIV/AIDS pandemic and the upsurge of cardio-vascular diseases, there is increasing awareness amongst Cameroonians, irrespective of age group, of healthy eating and drinking. Amongst the younger generation, there is a strong inclination towards carbonates, whilst middle-aged consumers are inclined towards fruit/vegetable juice. Over the review period, companies that produce dairy products launched juices and used the health factor to attract consumers. The older generation tended more towards consumption of energy drinks. Over the review period, carbonates and functional drinks registered the second and third highest volume CAGRs after bottled water.
Table of contents
SOFT DRINKS IN CAMEROON : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. TOTAL SOFT DRINKS SALES
2.1 Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
3. OFF-TRADE SOFT DRINKS SALES
3.1 Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
3.2 Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
3.3 Leading Company Profile: Brasseries du Cameroun
3.4 Leading Company Profile: Union Camerounaise de Brasseries (UCB)
3.5 New Product Launches
Summary 1 Major New Product Launches 2004
3.6 Retail Distribution
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
3.7 Retailer Activity and Private Label Trends
3.8 Forecast Market Performance
Table 20 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 21 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 22 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 23 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
4. DEFINITIONS